Increasing Systematic Investment Plan (SIP) contributions after receiving a salary hike is a common consideration for many salaried employees. Financial planners emphasize that inflation reduces the purchasing power of money, making it essential to adjust SIP amounts accordingly. For instance, a monthly SIP of ₹10,000 earning an annual return of 12% could grow to approximately ₹8.11 lakh in five years. However, if contributions are increased by 10% each year, the investment could grow to around ₹9.69 lakh, demonstrating the significant impact of gradual increases. Investors can automate their SIP increases through options like step-up SIPs, which allow for fixed or percentage-based annual increments. While automation offers convenience, it may not always align with real-world financial changes, such as rising expenses or varying salary increases. Therefore, a combination of automation and periodic reviews is often recommended. Additionally, whether to channel increased contributions into existing funds or new investments depends on the investor's portfolio needs, with opportunities to diversify into areas like international funds or commodities if gaps exist.